Steps to Take for Avoiding Labor Lawsuits
Employers have never had to operate in such a litigious business environment. Combined with ever-multiplying labor laws, it’s no wonder that employers have become increasingly focused on improving wage and hour compliance.
Left unchecked, compliance risks can unleash individual and class action lawsuits upon unprepared businesses, while tarnishing hard-earned reputations.
But there are actions employers can and should take for improving their day-to-day compliance and avoiding labor lawsuits. One best practice is to implement a closed-loop compliance management process. The closed-loop model consists of six sequential steps that work together to minimize risk:
Step 1: Track and interpret labor regulations.
Step 2: Document policies and setup compliance procedures.
Step 3: Train employees and managers on compliant behaviors.
Step 4: Continuously monitor post-training compliance.
Step 5: Aggressively audit and investigate deviations.
Step 6: Implement corrective actions.
In this compliance blog series, we’ll review each of these six steps in greater detail.
Keep in mind: although labor laws vary by state, CBAs (collective bargaining agreement), and more, all share the universal need to prove to regulatory bodies that the employer has done everything possible to not only comply with the letter of the law, but with its spirit as well.
Concerned about compliance? See how we can improve your compliance here or look into our other resources available in our Compliance Corner.
Or here you can learn about our human capital management systems.